Once you have selected the perfect place to locate your company in Massachusetts, the people of Team Massachusetts stand ready to assist you with competitive incentives and other programs that can help protect your bottom line.
Team Massachusetts includes professionals at MOBD, MassEcon, MassDevelopment, Mass Life Sciences Center, and the Mass Office of International Trade and Investment, who work together on business location and relocation projects.
Even though the state already ranks 11th lowest in individual taxes, according to the Tax Foundation, the Massachusetts Office of Business Development makes a variety of tax incentives available to qualifying businesses.
The Economic Development Incentive Program is the best place to start when you are ready to do an expansion project. EDIP was designed by Massachusetts lawmakers to reward companies that create jobs and contribute to economic growth. A firm that participates in EDIP may receive state tax credits and/or local property tax incentives in return for committing to new job creation, existing job retention and private capital investment in a qualifying project.
The EDIP Review Team and Economic Assistance Coordinating Council (EACC) evaluate each application for incentives based upon various criteria, which can be found here: www.mass.gov/info-details/economic-development-incentive-program-edip.
To begin the process, employers are encouraged to contact their local MOBD (Massachusetts Office of Business Development) Regional Director. A regional map, including contact information for each director, can be found here: www.mass.gov/service-details/massachusetts-office-of-business-development-regional-directors.
Involving a regional director early in this process is recommended so that a project can be pre-qualified. Their assistance can help determine whether EDIP tax credits or other programs are more appropriate. Regional directors also know program deadlines, eligibility requirements, and a city or town’s historic use of EDIP.
Among the most helpful programs are these:
- $20 million in annual Tax Credits for Job Creation through the EDIP (Economic Development Incentive Program).
- 3% Investment Tax Credit.
- 10% Research and Development Tax Credit.
- $15 million-plus in Workforce Training Fund Grants.
- $20 million annual Life Sciences Tax Credits.
Sales tax exemptions for manufacturers and research companies.
In addition, Massachusetts offers two popular grant programs: Regional Economic Development Organization (REDO) Grant Program and Massachusetts Transition and Growth Program (MassTAG). REDO grants are used for projects that facilitate regional growth. MassTAG grants are designed to bolster the state’s life sciences ecosystem.
Massachusetts also offers a Brownfields Tax Credit Program that is administered by the Massachusetts Department of Revenue. This program offers eligible businesses and nonprofit organizations a tax credit for the costs incurred in a brownfields remediation project.
Companies may also seek various energy rebates and incentives through the state. These include the Commonwealth Energy Tool for Savings (energyCENTS); Clean Energy Programs; and Energy Efficiency Programs.
For more information, contact the office of Doug Kehlhem, Senior Director at MassEcon, at 617-924-4600 or dkehlhem@massecon.com.